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Whether the money received from the sale of your car is taxable or not depends on if the car was for business vs. personal use.

If the car has been used in a business and there was a tax deduction taken for depreciation, you must report the recapture of depreciation from the sale on Form 4797 and calculate any gain or loss. A gain would be taxable; a loss may be deductible against your other income.

Losses on the sale of personal property are not deductible, but gains from such sales are taxable. The gain is calculated by subtracting the amount of the sale minus the purchase price. It is rare to have a gain on the sale of a personal vehicle because no depreciation deduction can ever be taken for personal use items. Therefore, the cost/basis of the vehicle remains the same (what you originally paid for the car). For the vast majority of cars, the selling price is less than what the owner paid for it. However, classic and collector cars have been known to yield gains for their owners. If you happened to be fortunate enough to buy a car which became a classic and increased in value, you would have a reportable capital gain. For these types of gains, the amount of tax owed depends on how long the car was owned. If owned for a year or longer, the long-term capital gain treatment is applied and the taxes are less than if the car was owned for less than a year.

As a frequent contributor here, I must first apologize for my last response to a combat pay question. I messed that up bad. The whole military pay topic sub catagories l…ike combat pay, which also has many subs and ifs...is a tax world unto itself. I believe the answer to this Q is that you can elect to have it count to EIC. Now I'm not sure that means it's already excluded from CTC already....again a lot of this pay is excluded way before those calcs. There is certainly enough possibilities with this special income to either get software which probably leads you through it, or if using a service, try and chose one near a base that may deal with many of these. (Like a return with farm income & benefits is uncommon to the tax trade in a big city).

Your taxes must be paid through out the year. That is, by either payroll withholding or making estimated payments on your estimated amount due quarterly...with a Form 10…40-ES. Not making payments through the year will incur a penalty and interest charge whenever you do eventually pay. That would presumably be sometime before April 15, along with your return filing, for the year the payments should have been made.

Your Q almost makes no sense. Only if your car was repoed and sold for more than the debt/basis, did you receive anything yourself...and then the question would still …be what your basis is in it (that is your cost plus all those other things like the repo fee's, vs what you received). If your the one repoing it...it is essentially a business transaction. in most places you can' make money on the repo anyway.

If the 16 year old has sufficient income, yes. There is no age limit on who has to pay income taxes. Even if the 16 year old is not required to pay income tax, he can file… an income tax return to get back any withholding that was taken out of his salary. Refer to Tables 1, 2, and 3 on pages 2, 3, and 4 of Publication 501 to determine if you are required to file a federal tax return: http://www.irs.gov/pub/irs-pdf/p501.pdf Since a 16 year old will probably be a dependent of his parents, tables 2 and 3 will apply. Note that the 16 year old may also have to file state income returns. Refer to the instructions that come with your state's tax forms or the web site of your state's taxing agency to determine if a state tax return is required.

Income is paid on income accrued or arises in the hands of person resident in India or in special cases non residents. Chapter No II of the Income Tax, 1961 defined the basis …of charge. The scheme of taxability of income in India is being given in the following chapters: Ch. No. II BASIS OF CHARGE Ch. No. III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME Ch. No. IV COMPUTATION OF TOTAL INCOME - Heads of income Ch. No. IV- -A COMPUTATION OF TOTAL INCOME - A. - Salaries Ch. No. IV- -B COMPUTATION OF TOTAL INCOME - B. - [Omitted] Ch. No. IV- -C COMPUTATION OF TOTAL INCOME - C. - Income from house property Ch. No. IV- -D COMPUTATION OF TOTAL INCOME - D. - Profits and gains of business or profession Ch. No. IV- -E COMPUTATION OF TOTAL INCOME - E. - Capital gains Ch. No. IV- -F COMPUTATION OF TOTAL INCOME - F. - Income from other sources / / / / / /

You are the only one that has all of the necessary information that will have to be reported on your 1040 FEDERAL income tax return for the year in order to do the calculation… for the numbers that you are looking for. After you complete your 1040 federal income tax return correctly to your TAXABLE INCOME and page 2 lines 43 and Line 44 you will know the amount of your income liability before any credits or other taxes. Continue from Line 45 to the last lines at the bottom of the 1040 page 2 and then you will know how much taxes you will have to pay if any after you complete your 1040 income tax return correctly.

With the exception of collectibles and/or antiques, cars usually lose value over time. However, if there is a gain or profit from the sale of any vehicle, the gain or profit i…s taxable and reported as a capital gain on Sch D of IRS form 1040. It is usually taxable on most state and local income tax forms. If the taxable income reported on the federal return is transferred to the state/local tax form, then there is no need to report it on the state/local return since it is included on the federal return.

With the exception of collectibles and/or antiques, cars usually lose value over time. However, if there is a gain or profit from the sale of any vehicle, the gain or profit i…s taxable and reported as a capital gain on Sch D of IRS form 1040. It is usually taxable on most state and local income tax forms. If the the taxable income reported on the federal return is transferred to the state/local tax form, then there is no need to report it on the state/local return since it is included on the federal return. With the exception of collectibles and/or antiques, cars usually lose value over time. However, if there is a gain or profit from the sale of any vehicle, the gain or profit is taxable and reported as a capital gain on Sch D of IRS form 1040. It is usually taxable on most state and local income tax forms. If the taxable income reported on the federal return is transferred to the state/local tax form, then there is no need to report it on the state/local return since it is included on the federal return.

Car Selling

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